MNB Warns Draft Amendments Would Affect Independence

MNB

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The National Bank of Hungary (MNB) said amendments to the Central Bank Act drafted by the Finance Ministry would affect its independence in a statement issued on Tuesday.

"It is the MNB's firm position that the draft amendment to the Central Bank Act, in its current form, would influence the independence of the central bank," MNB said.

"Some provisions of the draft transfer to the supervisory board not only further rights of oversight, but management rights that could affect the central bank's basic activities," it explained.

"If the new law is approved, it could be used to construct narratives against the Hungarian economy and to damage our financial stability," the central bank also warned.

As the BBJ reported earlier this week, the MNB denied rumors circulating in the press regarding strains in the relationship of MNB governor György Matolcsy and Prime Minister Viktor Orbán.

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